Wilko opens redundancy consultation process amid 'uncertain' events

Digital reporter

Thousands of jobs at retailer Wilko are at risk after the firm confirmed it has entered redundancy consultation with nearly 4,000 staff, weeks after bemoaning a rise in costs as a result of the pound's Brexit-induced collapse.

The discount chain said, following a review of its operating functions, changes are required to "ensure it is best placed to continue to thrive within an ever-changing retail landscape".

Wilko said it is consulting with 3,900 of its store supervisory team about a new management structure, alongside trade union the GMB.

It added that 1,000 new senior supervisor roles will be created as part of the shake-up, as well as a "significant amount" of customer service roles.

The move comes after Wilko posted an 80% plunge in pre-tax profits to £5.1 million in the year to January 28, with the firm pointing to "uncertain economic and geopolitical events", the collapse in sterling and the introduction of the national living wage.

Inflation, which has soared since the Brexit vote sent the British currency tumbling, hit its highest level for nearly four years in May at 2.9%, before easing back to 2.6%.

The net result has been an increase in import costs for retailers, who have then passed this on to already hardpressed consumers.